State legislators continue to push for more information about why the
state Department of Transportation failed to obtain timely federal
reimbursements for highway projects, even though more than $300 million
was involved. In a Thursday hearing, DOT officials finally acknowledged
that the delay occurred but failed to provide a satisfactory reason. So
far, the DOT's less than adequate response to legislative questioning
underscores the necessity of agency reform that will produce the
forthrightness and accountability that the public deserves.
A highly critical review of agency operations by the Legislative Audit
Council last month raised serious questions about contracts with
consultants, including management fees that appear unreasonably high. The
agency has hired firms that didn't score among the top companies by the
DOT's own ratings. Some consulting firms include former DOT officials and
employees, some of whom were rehired by the agency at far greater rates
than would have been paid in-house.
The audit also cited apparent favoritism in the hiring of friends and
family of at least two commissioners, both of whom have been among the DOT
administrator's most vocal supporters. The list of critical findings goes
on and on.
But legislative hearings so far have given the most attention to the
agency's failure to seek federal reimbursements for projects during much
of the 2004 and 2005 legislation sessions. Doubtless that's because of
speculation that the DOT did so to mislead the Legislature about its
revenue standing, presumably to bolster its case for increased revenue to
the agency.
On Thursday, agency officials attempted to send a Senate committee off
into a thicket of unrelated issues when asked about the matter. But
ultimately sharp questioning by committee members, including Sens. Larry
Grooms, R-Berkeley, and Chip Campsen, R-Charleston, elicited an
acknowledgment that the delay occurred. Their efforts were aided by a DOT
memo produced by the audit council, showing it was done as a matter of
policy. A DOT finance official admitted the loss of as much as $1.5
million in interest to the agency as a result. However, an agency
spokesman denied attempting to deceive the Legislature.
But that was about as much light that DOT officials were able, or
willing, to shed on the subject. Unfortunately, DOT Executive Director
Elizabeth Mabry wasn't present to answer the questions. She reportedly is
under the weather. In its initial written response to the audit, the
agency denied delaying billings to lower cash balances or that the state
lost interest income as a result.
The issue is of particular interest to the Legislature because of a
continuing push for more funding by the agency. The Legislature is
responsible for providing those funds, through an increase in the gas tax
or by other means, and has a right to expect the DOT to deal in good faith
on financial matters. The response at the hearings so far is hardly
heartening, nor is it likely to encourage the Legislature's support for
additional revenue next session.
For example, a DOT finance official declared that the amount of
interest lost by the delay in federal reimbursements was a miniscule part
of the agency's budget, adding, in effect, that he normally didn't deal
with such small sums. Such a cavalier response to a question about public
funds will be unlikely to endear the agency to the Legislature. Neither
will the agency's efforts to beat around the bush when confronted about
issues raised in the audit.
Even the genial Sen. Grooms, who chairs the subcommittee, showed
occasional exasperation at the difficulty in extracting information from
agency spokesmen. At the beginning of Thursday's hearing, he cited the
sharp variance between the LAC findings and the DOT's response in two
previous hearings, adding, "It looks like somebody isn't telling the
truth." And then he proceeded to place everyone who testified under oath.
So far, the DOT's response to the audit and to legislative
investigators has largely been to talk about what a great job the agency
is doing, whether that assertion is to the point or not. Legislators
shouldn't let the DOT off the hook. Three more hearings are scheduled next
week by Senate and House committees. In the interest of time, the
committees should consider consolidation, as they settle down to a careful
look at what constitutes fact, fallacy or fiction. DOT should be made to
recognize that talking around the numerous issues raised in the audit
isn't a viable tactic as legislators examine how to make the agency more
answerable for its management practices.